Azerbaijan, a former Soviet Republic in the Caucuses, is getting fiber to the home service and a nationwide speed guarantee of 10-100Mbps for all 9.3 million Azeris, no matter where they live in the country.

Most large cities will be scheduled for fiber to the home service, as part of successive annual budgets planned for telecommunications upgrades. The government has spent $182 million on telecom services so far this year, according to the Ministry of Telecommunications and Information Technologies.

From January to September, 673.3 kilometers of fiber optic cables were laid, primarily by Aztelekom, the country’s largest telecom provider. Much of the initial spending is for upgrades to the Azerbaijani telephone system, a combination or wired and wireless services.

The ministry plans to provide all areas of Azerbaijan with fiber speed Internet access by 2017. At present, 70 percent of Azerbaijan’s population uses the Internet and 50 percent have the service at home.

Officials claim the goal of the fiber project is to deliver blanket broadband coverage to the entire country, with speeds at least 100Mbps by 2017.

Azerbaijan sees fiber broadband as a critical part of the country’s development to meet the economic challenges of the digital economy. The government considers traditional telephone based DSL and cable modem technology wholly inadequate to the task. Presently, ADSL is the most common technology in Azerbaijan, but is limited to 2-8Mbps — performance now deemed obsolete and unacceptable by the ministry.

Azerbaijan’s largest ISP

The World Economic Forum’s report “Global Information Technology 2013″ ranked Azerbaijan 56th on the Networked Readiness Index among 144 world countries even before the fiber service is constructed. The U.S. is ranked 9th, Canada is ranked 12th.

Azerbaijan’s aggressive deployment of fiber optics has won recognition from the World Economic Forum for laying the foundation for much higher rankings in the future.

Much of the funding for the project comes from the Azerbaijani State Oil Fund, a special purpose state organization dedicated to sharing revenues from oil and gas production with the Azeri people through investments in social-economically important projects. Oil wealth is considered a national resource, not a windfall for oil industry executives and shareholders. The fund has helped build housing for persons displaced in the Armenian-Azerbaijan conflict over the disputed Nagorno-Karabakh region, construct potable water systems, and finance public transportation and telecommunications projects.

Azerbaijan plans to manufacture its own fiber cables for the project inside the country in a joint venture with an Austrian firm.

[flv width=”480″ height=”380”]http://www.phillipdampier.com/video/Azerbaijani ICT.mp4[/flv]

The Azerbaijan Ministry of Telecommunications and Information Technologies produced this English language introduction to telecom services and broadband (collectively called ‘ICT’) in the country.  “CIS” refers to the Commonwealth of Independent States, which includes many of the republics constituting the former U.S.S.R., as well as Russia itself.  (7 minutes)

Nebraska City, Neb. understands how super fast broadband can transform local businesses, education, health care, and consumer entertainment. The only problem for the community of 7,277 residents is getting a provider to supply it.

Although incumbent providers Time Warner Cable and Windstream Communications were willing to offer expanded service, only Spiral Communications of Bellevue, Neb., promised to deliver 1,000/1,000Mbps fiber optic broadband to every local resident and business that wants it.

“To be competitive with other communities in retaining and attracting industry, businesses, families and individuals and to continue to provide a high quality of life for our citizens, we must have greater bandwidth,” Nebraska City Mayor Jack Hobbie said.

Spiral has begun engineering studies in the Otoe County seat to contemplate the total cost of the network — an expense the company will bear itself. Spiral said it would invest $3 million in the equipment and pay a 3 percent franchise fee to the city.

Prices for the service have not yet been set, but Spiral promises customers can buy less costly Internet speeds of 10-50Mbps.

Currently, Spiral Communications provides wireless Internet service in western Iowa and has a fiber to the home project in Traynor and fiber optic ring around Tabor, both in Iowa.

Georgia’s first gigabit fiberhood will serve residents of a luxury $600 million development now under construction in an Atlanta suburb.

North American Properties is partnering with Hotwire Communications to install an ultra high-speed fiber to the home broadband network offering gigabit speed to every resident, hotel guest, retail shop, restaurant and office worker at the Avalon development in Alpharetta, located north of Atlanta.

“This is a game-changer for Alpharetta,” said Alpharetta mayor David Belle Isle. “Nowhere else in Georgia can you get gigabit service to your home and nowhere else but Alpharetta can a business take advantage of this cost-effective way to future-proof their operations.”

Avalon is a 2.4 million square foot mixed-use development that will open in October 2014. Phase one will consist of 250 luxury rental homes (average rent $1,400), 101 single-family homes ($400,000-1.7 million), 400,000 square feet of retail and restaurants and 108,000 square feet of loft office space.

The property developer hopes fiber broadband will help it attract around 800 permanent residents as well as be a selling point for commercial tenants.

Hotwire Communications specializes in overbuilding multiple dwelling residences with fiber service. The nearest competitors are Comcast and AT&T, neither which offer speeds at Hotwire’s level.

*-Terms, conditions, and a whole lot more applies.

Austin residents are getting spoiled with promises of gigabit broadband — the first major city in the country offered a competitive choice of 1,000Mbps Internet providers — Google and AT&T.

But one of those claiming to offer a “100-percent fiber Internet broadband network that will deliver up to 1Gbps per second,” is already fudging on that commitment before activating its first fiber customer.

AT&T’s sudden interest in selling 1,000Mbps service came as a surprise to Austin residents that have been told for years their broadband service was fast enough as is. Grande Communications had been the choice for customers seeking the fastest speeds — they sell up to 110/5Mbps for $110 a month. Time Warner Cable still tops out at 50Mbps and AT&T’s U-verse, still not fully deployed in Texas, sold up to 24Mbps ‘screaming fast’ Max Turbo service as its top offering until recently, when AT&T began limited roll-out of up to 45Mbps service.

Mere hours after Google announced Austin as its next choice for Google Fiber, “me-too” AT&T was announcing it would build its own gigabit fiber to the home network in the same city. That was a complete 180 for AT&T, which has consistently argued that running fiber to the home was an unnecessary expense. While Verizon faced the wrath of Wall Street for its decision to launch FiOS — an all-fiber-network — analysts were complaining Verizon was spending too much while AT&T was spending considerably less on its fiber to the neighborhood U-verse system that keeps existing copper wire into the home.

Right from the beginning, AT&T has always accompanied certain terms and conditions for any fiber deployment — winning equal concessions that Google received from local officials with respect to pole attachment fees, zoning, permits, and other expenses. If those were not forthcoming, AT&T could walk away from its fiber commitment at any time.

On Monday, AT&T announced it had started deploying fiber for AT&T U-verse with GigaPower, with a plan to launch in December in neighborhoods with the highest number of votes to get the service. AT&T is taking names and numbers of interested customers seeking to show their interest in fiber service. No deposit or commitment is required to vote, but you will be placed on AT&T’s marketing mailing lists.

“Austin embodies innovation and social consciousness, and is the heart of a vibrant, ever-evolving tech culture and entrepreneurial spirit,” said Dave Nichols, president of AT&T Texas. “With our all-fiber U-verse services, we are building the foundation for a new wave of innovation for Austin’s consumers, businesses, and civic and educational institutions. It’s about engaging the full community and empowering the city and its people with all that technology can offer us. This investment will help attract new business and new jobs to Austin.”

Phillip Dampier

As long as those consumers, businesses, and jobs are within the first deployment zone for AT&T’s fiber network.

For the rest of this year and well into the next, that will be a very exclusive neighborhood.

AT&T’s press release claims it will “initially reach tens of thousands of customer locations throughout Austin and surrounding areas this year, with additional local expansion planned in 2014.”

The five-county Austin–Round Rock metropolitan area has a population of 1,834,303 residents. Assuming AT&T managed to offer fiber service to 100,000 residents — and that is a generous figure, that represents only 5.5% of Greater Austin. The old U-verse is still a work in progress in several Texas cities, so it could take years for AT&T to deploy fiber in Austin. Expect AT&T to start with the low-hanging fruit — multi-dwelling units such as apartments, condos, and other similar buildings, some that already have existing fiber connections in place.

AT&T may never get around to offering fiber to more rural locations in Austin’s suburbs: “There are many factors involved in stringing an advanced fiber network, so having your neighbors vote to be notified about U-verse with GigaPower is no guarantee we’ll get to your neighborhood first, but it does give us some idea of where we want to focus our efforts; and besides, things are always more fun when we work together.”

AT&T is already backing away from its commitment to offer gigabit service, at least initially.

“The December launch will initially feature symmetrical speeds of up to 300Mbps, […] with an upgrade to speeds up to 1 Gigabit per second when available in mid-2014, and at no extra cost,” AT&T writes in its press release.

Speaking of cost, nobody at AT&T is willing to give us one for the 1,000 300Mbps launch tier.

If AT&T is smart, it better set it lower than what Google is likely to charge, considering AT&T will initially only deliver less than 1/3rd of the promised gigabit speed.

While thinking about that, AT&T might also want to dump usage caps. The fastest U-verse tiers come with a 250GB usage allowance, which can really crimp a screaming fast fiber experience once your allowance runs out.

Verizon’s moratorium on further expansion of its fiber to the home service will continue for “the next couple of years.”

Verizon FiOS won’t be coming soon to a home near you, unless that home is inside a community with a standing agreement with the phone company.

Verizon CEO Lowell McAdam made it clear to attendees at Tuesday’s Goldman Sachs 22^nd Annual Communacopia Conference his priority continues to be investing in the company’s highly profitable wireless business, while the company’s wired infrastructure is being targeted for more cost cutting, especially in areas designated to see existing copper infrastructure decommissioned. As for expanding FiOS into new communities, McAdam said he instead preferred to concentrate on improving market share and profits for the next few years in areas already getting the fiber optic service.

McAdam noted John Stratton, president of Verizon Enterprise Solutions, has been hard at work pruning Verizon’s wireline products and services targeted to business and government customers.

“I think [he] killed about 2,000 products this year, and we have taken 350 systems offline last year,” McAdam noted. “I think we are already at 250 this year. That sort of discipline gives you the ability to streamline your infrastructure.”

For residential customers, Verizon has two sets of offerings: one for customers served by FiOS fiber optics, the other for customers unlikely to see fiber upgrades indefinitely.

Inside Existing FiOS Service Areas

“We are doing some major technology shifts within FiOS to make it more efficient,” McAdam said. “We’re going to concentrate there for the next couple of years.”

McAdam’s signals to Wall Street were loud and clear: no more FiOS expansion into new communities for now.

McAdam

Instead, Verizon will focus on improving existing service in several key areas:

• Verizon has almost two million optical terminals that McAdam says were active at one point and are now sitting idle, suggesting FiOS has won and lost nearly two million customers since launching, either because the customer switched providers or moved away. McAdam said he wants to improve Verizon FiOS’ product set enough to attract those customers back. He noted with the terminals and cables already in place, the capital costs to win back a former customer are near zero;
• Verizon is introducing a new terminal this fall. Verizon’s FiOS Media Server “eliminates the requirement for coax, once you get into the optical terminal in the basement or wherever in the house,” McAdam said. “That slashes the installation time, and therefore makes the product a lot more profitable for us going forward. It eliminates set-top boxes, it is all IP-based going forward.”
• Verizon will continue to expand Verizon FiOS, particularly in New York City where it has a commitment to offer service.

Verizon FiOS has managed to build a much larger market share than its nearest neighbor, AT&T U-verse. McAdam claimed Verizon FiOS has achieved a 39 percent market share in broadband and around 34 percent on its television service so far. McAdam’s goal is to boost that to 45 percent. In areas of Texas where Verizon first introduced its FiOS fiber optic service, the company already has a penetration rate above 50 percent for broadband and 50 percent for television, demonstrating room to grow market share. AT&T’s U-verse TV penetration rate is 20.1 percent.

For Those Unserved by FiOS

Verizon’s 4G LTE Broadband Router with Voice

Except for Fire Island, N.Y., there are no significant announcements of FiOS expansion. Instead, Verizon has focused on investing to improve its wireless 4G LTE cell networks with the hope existing landline customers will consider switching to higher-profit wireless service. An attempted trial of Verizon Voice Link, intended to be an entry-level wireless replacement of landline service, failed badly on Fire Island due to an avalanche of complaints about poor quality reception, dropped and incomplete calls, and lack of support for data.

Now Verizon is back with a new offering, its 4G LTE Broadband Router with Voice ($49.99 2-yr contract with $175 early termination fee/$199.99 month-to-month).

“Securely connect wired and wireless devices to the 4G LTE network, and connect your landline phone to make calls,” Verizon’s website says. “Combine voice and data on a Share Everything Plan for added savings.”

The device can function as both a wireless landline replacement and router for data. The unit includes three Ethernet ports and Wi-Fi to share your connection. A landline phone or cordless phone base station can be plugged in as well.

Verizon charges an extra $20 a month for Home Service Monthly Line Access on Share Everything Plans, which covers your telephone service. Customers get unlimited local, long distance, call forwarding, call waiting, three-way calling, and voice mail. 911 is available, but Verizon disclaims any responsibility if you cannot reach an operator. The device also supports TTY-TTD calling.

Verizon claims users can expect 5-12Mbps downloading and 2-5Mbps uploading on Verizon’s 4G network, assuming there is solid coverage where you use the device. Usage caps apply. A backup battery keeps the service running for up to four hours of voice calling in the event of a power outage.

McAdam admitted the thing that keeps him up most at night are regulatory issues. He particularly called out Europe, which he believes is hostile for investment. But Europeans pay considerably less for wireless service than North Americans pay, and often have more choices due to competition and regulatory oversight.

“I think the beauty of the ’96 Telecom Act was that it was such a light touch on broadband and mobile,” said McAdam. “And that is — and I sit in Europe talking to investors all the time — that is the biggest difference between the U.S. and Europe.”

To head the FCC off from pursuing any additional regulatory oversight, McAdam claims he reluctantly approved Verizon’s lawsuit against the government on Net Neutrality.

“We have had to take some positions, frankly, that we didn’t want to take,” McAdam said of the lawsuit. “It opened the door for them to get into price regulation of broadband. And I think that is not their charter, and I think it would be a mistake for the U.S. economy and certainly the telecommunications ecosystem.”

[flv width=”488″ height=”300″]http://www.phillipdampier.com/video/Verizon 4G LTE Broadband Router with Voice 9-25-13.flv[/flv]

Verizon Wireless’ latest 4G LTE router supports wireless landline service and 4G data.  (1 minute)